What to Expect During the Reimbursement Request Process
If rent is not paid, both your landlord and Padder will work with you to find a resolution. If no resolution is reached, the following steps will be taken:
Default Procedure
- Default Occurs
- The tenant defaults on lease obligations (*missed rent payment(s)).
- Landlord Notification
- Landlord must notify Padder of the default.
- Padder will collaborate with you and the landlord to explore repayment solutions.
- A detailed account statement outlining outstanding charges will be provided.
- 🚨 Tenant Responsibility: Active participation is required. If no action is taken, the landlord may proceed with the reimbursement request sooner.
Outcomes
If a Resolution is Met:
- No further action is required.
If Not Resolved:
Remedial Actions
- Landlord may initiate remedial actions in compliance with contractual and statutory laws.
Reimbursement Request Submission
- Landlords may file a Reimbursement Request with Padder to recover unpaid rent, legal fees, and vacancy/re-leasing costs, up to the agreed protection limit(s).
Outstanding Balances Beyond Protection Limits
- If the amount owed exceeds the Padder protection limit(s), the landlord may forward the remaining balance to collections.
Tenant Liability
As a tenant, it is your responsibility to fulfil all lease obligations. If your landlord files a successful reimbursement request and Padder compensates them, you must repay Padder directly for any amounts paid.
How to Avoid Default
- Communicate Early – Notify your landlord immediately if you anticipate payment difficulties.
- Explore Payment Options – Work with your landlord to set up payment plans or partial payments before the due date.
- Understand Your Policy – Review the terms and obligations of your Lease Agreement and Padder Commercial Deposit Replacement guarantee.
Being proactive and informed can help navigate financial challenges and maintain tenancy.
Need Assistance?
For further support, contact Padder Support.